| A half-billion-dollar 
            claim 
 Ottawa once tried to weasel an Alberta farmer out of his 
            mineral rights. Bad move
 
 by Colby Cosh
 
 WHEN the First World War ended, Canadians were 
            eager to do everything they could for the returning soldiers who had 
            served overseas. The intense patriotic love lasted for a 
            while--veterans were given their pick of the good jobs, the 
            prettiest women, the choicest goods. But memories soon began to 
            fade; the survivors of the war mostly just wanted to lead normal 
            lives. Eventually few reminders remained--the poppies of Armistice 
            Day, the Legion halls, and some parcels of land in the West that 
            Ottawa had given to veterans who wanted to homestead.
 
 This last legacy of the war is now the cause of a potentially 
            nasty dispute between the Province of Alberta and the federal 
            government. At stake are $428 million in royalties from the minerals 
            on those Soldier Settlement lands. On February 8, the Alberta 
            government filed a claim against Ottawa for this amount before the 
            Court of Queen's Bench in Edmonton. In a strange twist of fate, the 
            case might never have come up if Ottawa had not tried to take the 
            mineral rights in a soldier spread from an Alberta farmer back in 
            1970.
 The story begins in 1919, when the feds created the Soldier 
            Settlement Board to buy prairie land and teach the soldiers to work 
            it. One of the parcels, a 159-acre plot near Thorsby, about 30 miles 
            southwest of Edmonton, was bought by the government from a 
            homesteader in 1919, transferred to a veteran named Rusty Lynn in 
            1928, and sold almost immediately to a farmer named Charlie Snider, 
            who moved onto that land with his wife Tillie.
 Under the Soldier Settlement law, the Crown was supposed to 
            reserve the mineral rights in the soldier lands to itself. But for 
            some reason, the Soldier Settlement lawyers neglected to mention 
            this reservation in the text of Charlie's land title. Charlie and 
            Tillie lived on the land into the 1960s, believing all the while 
            that the mineral rights were theirs alone. They paid mineral taxes 
            and eventually even earned a modest amount of money on a lease to 
            the Sun Oil Co.
 Not long after--perhaps because of an earlier legal dust-up 
            between the Sniders and Rusty Lynn--Ottawa learned of the 
            incongruous situation and decided to play a little hardball to get 
            the mineral rights back. Fred Snider, Charlie and Tillie's son, 
            remembers that in 1970 a "goddamn government lawyer" appeared at the 
            house and presented him with papers. By this time, Charlie and 
            Tillie were deceased and Fred was living on the land as executor of 
            his parents' estate. He is still there today, and while the case is 
            a distant memory, he still sounds angry when he talks about 
            it.
 "It would have been easy to give up," says the retired grader 
            operator, "but I wasn't gonna just up and give in to the goddamn 
            government." Thus began one of the longest legal battles in Canadian 
            history. It took 21 years for Canada v. Snider Estate to wend 
            its way to the Supreme Court. By this time, the dispute had boiled 
            down to a single issue. The Sniders had a good title to the mineral 
            rights--under Alberta law. The federal government had a clear claim 
            to them under its own law. So the question was this: in 1930, when 
            Ottawa relinquished ownership of natural resources to the prairie 
            provinces, did the mineral rights in the soldier lands get 
            transferred along with them? In 1991, the Supreme Court answered 
            "yes" by a margin of five to two.
 For Fred Snider, the story was over (although he would have "sued 
            the bastards right back, if I hadn't gotten sick of fighting by 
            then"). For Alberta, the case was just beginning. The Snider 
            situation was unusual because the minerals had somehow been omitted 
            from the land title completely. But the vast majority of the titles 
            to soldier lands showed--and still show--the owners of the minerals 
            as the federal Crown. Alberta's Justice Department realized that the 
            Supreme Court had just handed those minerals back to them--and that, 
            just maybe, Ottawa suddenly owed Alberta 61 years' worth of 
            royalties.
 It is those royalties for which Alberta is now suing. Normally, 
            Ottawa would have 30 days to respond to the lawsuit, but the Alberta 
            government has waived that deadline, so the suit remains in limbo 
            for the foreseeable future. Federal Justice spokesman Alex Swann 
            says the department's lawyers are studying the province's claim and 
            will respond eventually. Meanwhile, the feds have entered 
            negotiations with the Saskatchewan government for its undisclosed 
            share of the pie. For the federal government, it could end up as a 
            costly reminder to let sleeping dogs lie.
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